Nbt Bancorp Inc. · NASDAQ:NBTB
Nbt Bancorp — Investor Presentation (September 2024)
38 slides from Nbt Bancorp's investor presentation, September 2024
Slide 1: Investor Presentation Third Quarter 2024
Investor Presentation Third Quarter 2024 Financial Information as of June 30, 2024
Slide 2: About NBT Bancorp
About NBT Bancorp About NBT Bancorp Strategic Initiatives Financial Performance Appendix 2
Slide 3: Company Profile
Company Profile FINANCIAL HIGHLIGHTS ASSETS LOANS 89th Largest Bank Holding Co. $13.50 Billion $9.85 Billion Headquarters Norwich, NY Founded 1856 Ticker NASDAQ: NBTB Market Cap(1) $2.31 billion NONINTEREST Branches 154 DEPOSITS INCOME TO REVENUE(2) Employees 2,155 $11.27 Billion Institutional Owner
Slide 4: Business Overview
Business RETAIL BANKING Overview • 154 Branches Across 7 States; 199 ATMs • Digital Banking CONSUMER LENDING • Home Lending • Personal Lending • Indirect Auto Lending COMMERCIAL BANKING • C&I and CRE Lending • SBA Lending • Business Banking • Treasury Management • Card and Payment Services FEE BUSIN
Slide 5: Key Highlights
Key Highlights High-performing, community bank with STRONG CAPITAL POSITION and traditional bank business model Consistent track record of ORGANIC GROWTH selectively balanced with market and product expanding acquisitions DIVERSE, GRANULAR DEPOSIT BASE with dominant shares in “hometown” markets that
Slide 6: Consistent Strength
Consistent Strength Tangible Equity Ratio • Strong financial performance and capital position with 9.50% over $1.5 billion in total capital 7.95% 7.93% 7.98% 8.11% 8.00% 7.15% • Highly diversified loan and deposit portfolios, conducting 6.50% business in 7 northeastern states 5.00% • Diverse and gra
Slide 7: Strategic Initiatives
Strategic Initiatives About NBT Bancorp Strategic Initiatives Financial Performance Appendix 7
Slide 8: Our Strategic Initiatives
Our Strategic Initiatives Execute Long-Term Grow and Augment Customer-First Growth Strategy Fee Businesses Digital Mindset • Organic growth across all • Continue to grow • Continuously enhance markets, business lines Retirement Plan experience we deliver to Administration, Wealth customers and emplo
Slide 9: Transformational Investments Underway: Upstate NY Semiconductor Chip Corridor
Transformational Investments Underway: Upstate NY Semiconductor Chip Corridor New York State has fostered the ideal semiconductor and advanced electronics manufacturing ecosystem1: ✓ The most advanced, publicly owned semiconductor R&D facility in North America ✓ The nation’s largest public universit
Slide 10: NBT Footprint Ideally Situated Along Upstate NY Semiconductor Chip Corridor
NBT Footprint Ideally Situated Along Upstate NY Semiconductor Chip Corridor NY CREATES is a New York State government affiliated nonprofit focused on facilitating public-private partnerships for next-generation semiconductor R&D, commercialization and workforce development. 10 STRATEGIC INITIATIVES
Slide 11: Disciplined Acquirer & Proven Integrator
Disciplined Acquirer & Proven Integrator We employ a strategic and selective acquisition strategy that targets high-value and accretive targets to enhance our existing franchise. NBTB has completed 12 acquisitions, including 2 banks and 10 fee-based businesses since 2013. • Advances New England Grow
Slide 12: Focus on Fee-Based Businesses
Focus on Fee-Based Businesses Q2 2024 Fee Income Composition(1) (%) Key Fee Revenue Verticals Over Time(2) ($ in million) $108 Wealth Management $96 $98 23.5% $16 Insurance Services $90 8.9% $16 $15 $80 $14 BOLI $74 4.2% $15 $38 Other $16 $33 $35 6.6% Retirement Plan $34 Administration 34.2% $29 Ser
Slide 13: National Benefits Administration Firm
National Benefits Administration Firm Revenues ($ in thousands) $53,109 11% 6-YEAR CAGR $48,112 “Helping America Retire” Over 375,000 Plan Participants Nationwide $37,180 Customized Consulting, Recordkeeping, Actuarial and Administrative Services for All Types of Retirement Plans $28,272 Deep Partne
Slide 14: Enterprise Technology Themes
Enterprise Technology Themes NBT’s comprehensive Technology Roadmap is a customer and employee-focused plan designed to deliver technology-enabled solutions that enhance experience, and foster profitability and growth. DIGITAL & PAYMENTS CYBERSECURITY AUTOMATION • Delivering convenient and • Protect
Slide 15: Financial Performance
Financial Performance About NBT Bancorp Strategic Initiatives Financial Performance Appendix 15
Slide 16: Track Record of Consistent Growth
Track Record of Consistent Growth Total Assets Gross Loans ($ in billion) ($ in billion) $9.65 $9.85 $13.31 $13.50 $12.01 $11.74 $8.15 $10.93 $7.50 $7.50 $6.89 $7.14 $9.56 $9.72 $6.58 $9.14 2017 2018 2019 2020 2021 2022 2023 Q2' 24 2017 2018 2019 2020 2021 2022 2023 Q2' 24 Shareholders Equity Deposi
Slide 17: Strong & Stable Profitability
Strong & Stable Profitability Net Interest Income Net Interest Margin FTE ($ in million) (%) $386.4 $378.2 $362.2 3.58% 3.58% 3.47% $315.7 $321.1 $305.6 $311.6 3.34% 3.31% 3.29% $283.5 3.16% 3.03% 2017 2018 2019 2020 2021 2022 2023 2024 (2) 2017 2018 2019 2020 2021 2022 2023 2024 (3) Fee Income(1) A
Slide 18: Results Overview Q2 2024
Results Overview Change % Change Q2 2024 ($ in millions except per share data) Q2 2024 Q1 2024 Q2 2023 Q1 2024 Q2 2023 Period End Balance Sheet Total loans $ 9,854.3 $ 166.3 $ 1,496.2 1.7% 17.9% Total deposits 11,271.5 76.2 1,741.5 0.7% 18.3% HIGHLIGHTS(1) Income Statement (2) FTE net interest incom
Slide 19: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin Net Interest Income ($ in millions) & Net Interest Margin (%) HIGHLIGHTS(1) $105.0 4.00% • Net interest margin increased 4 bps to 3.18% $99.8 $95.0 $95.5 $95.8 $97.8 3.75% • Interest earning asset yields increased 8 bps with loan yields $89.5 up 9 bps $85.0
Slide 20: Noninterest Income
Noninterest Income Noninterest Income Trend(1) ($ in millions) $45.0 HIGHLIGHTS(2) $4.1 $4.2 $40.0 $4.0 • Noninterest income to total revenue $5.2 $5.6 $35.0 $3.7 $4.2 was 31%(1) (above peer levels) $5.5 $5.4 • Record high of $43.3 million(1) in $30.0 $5.1 noninterest income $25.0 $12.8 $14.3 $14.8
Slide 21: Noninterest Expense
Noninterest Expense Noninterest Expense Trend(1) $100.0 ($ in millions) HIGHLIGHTS(2) Salaries & Benefits $80.0 • Decreased by 0.6% driven by seasonally higher payroll taxes and stock-based compensation in Q1, $50.0 $55.7 $55.4 which were partially offset by merit $60.0 $49.2 pay increases and medic
Slide 22: Capital Strength
Capital Strength Regulatory NBT Regulatory Well Capital Ratios 6/30/2024 Capitalized Level Tier 1 Leverage 10.16% 5.00% Total Risk-Based Capital 14.88% 10.00% Q3 2024 dividend of 12th consecutive year $0.34 per share – of annual dividend 6.3% increase increases in 2024 22 FINANCIAL PERFORMANCE
Slide 23: Loans
Loans Home Equity Residential Solar 3% 9% Indirect Auto HIGHLIGHTS(2) 12% • Loans increased $203.6 million from December Residential Real Estate Other Consumer 31, 2023 1% Total Loans(1) 22% • Total commercial loans increased $201.0 $9.85 million to $5.18 billion C&I • Total consumer loans increased
Slide 24: Deposits
Deposits HIGHLIGHTS(2) Time 12% Demand • Cost of total deposits of 1.68%, up 7 bps (Noninterest • Total cost of funds was 1.85%, up 6 bps Total Deposits(1) Bearing) 30% • Month of June 2024: $11.27 Money Market • 1.70% total cost of deposits • 1.85% total cost of funds billion 29% Savings and • Peri
Slide 25: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail Owner Occupied CRE ($0.76 billion)(1) Commercial & Industrial ($1.40 billion)(1) Real Estate Industry Wholesalers 9.8% 6.2% Manufacturing All Other Industries Construction Trade 10.7% 16.5% Construction Trade 9.8% 5.6% Medical 7.1% Food Services Wholesalers 5.7% 8.5%
Slide 26: Consumer & Residential Portfolio Detail
Consumer & Residential Home Equity Portfolio Detail 7% Residential Solar 18% Consumer Lending Portfolio(1) Other Consumer 3% Residential Real $4.67 billion Estate 46% Indirect Auto 26% As of 6/30/2024 Consumer Lending Portfolio Metrics Total Weighted Outstandings # of Average Average Average Categor
Slide 27: Asset Quality
Asset Quality Nonperforming Loans / Loans (%) 1.20% NBTB’s 10-year average ratio of Nonperforming Loans / Loans 1.00% is 11 basis points lower than 10-year average of peer median(1) 0.80% 0.65% 0.64% 0.60% 0.44% 0.39% 0.40% 0.26% 0.20% 0.00% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Asset Qu
Slide 28: Asset Quality
Asset Quality Net Charge-Offs $50,000 Nonperforming Loans(1) 0.90% $7,500 0.45% $40,000 $37,874 $37,789 $38,088 $6,000 $5,327 0.70% $4,679 0.30% $4,204 $30,000 $4,500 $24,264 $3,699 0.50% $3,456 $19,686 $20,000 $3,000 0.22% 0.18% 0.19% 0.15% 0.39% 0.39% 0.39% 0.30% 0.17% $10,000 0.15% $1,500 0.24% 0
Slide 29: Appendix
Appendix About NBT Bancorp Strategic Initiatives Financial Performance Appendix 29
Slide 30: Performance to Peer Group
Performance June 30, 2024 to Peer Group Peer Peer Performance Ratios % NBTB Median Average Core ROAE (1)(2) 9.51% 8.85% 8.41% Core ROATCE (1)(2) 13.18% 11.48% 12.23% Net Interest Margin (1) 3.16% 3.08% 3.15% Fee Income / Revenue(3) 31.03% 19.72% 20.22% Loans / Deposits 87.43% 93.45% 92.72% June 30,
Slide 31: Loan Loss Reserve (CECL)
Loan Loss Reserve (CECL) Loan Type 1/1/2020 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Reserve / Loans Commercial & Industrial 0.98% 0.86% 0.87% 0.84% 0.79% 0.76% by Segment Commercial Real Estate 0.74% 0.93% 1.00% 0.99% 0.97% 1.00% Residential Real Estate 0.83% 0.73% 0.79% 0.84% 0.89% 0.98%
Slide 32: Peer Group
Peer Group Name HQ City State Ticker Berkshire Hills Bancorp, Inc. Boston MA BHLB Brookline Bancorp, Inc. Boston MA BRKL Community Financial System, Inc. Dewitt NY CBU Dime Community Bancshares, Inc. Hauppauge NY DCOM Eastern Bankshares, Inc. Boston MA EBC First Busey Corporation Champaign IL BUSE F
Slide 33: External Recognition
External Recognition In the J.D. Power 2024 U.S. Retail Banking Satisfaction Study, NBT Bank ranked #2 in the NY Tri-State Region, which includes New York, Connecticut and New Jersey. 33 APPENDIX
Slide 34: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Dollars in Thousands) Q2 2024 Q1 2024 Q2 2023 Net Income $ 32,716 $ 33,823 $ 30,072 Amortization of Intangible Assets (Net of Tax) 1,600 1,626 344 Net Income, Excluding Intangibles Amortization $ 34,316 $ 35,449 $ 30,416 Average Tangible Common Equity $ 1,043,383
Slide 35: Reconciliation of Non-GAAP Measures
Reconciliation (Dollars in Thousands) Net Interest Income Q2 2024 $ 97,174 Q1 2024 $ 95,174 Q4 2023 $ 99,173 Q3 2023 $ 94,895 Q2 2023 $ 89,085 of Non-GAAP FTE Adjustment 658 658 669 568 402 Measures Net Interest Income, Tax Equivalent $ 97,832 $ 95,832 $ 99,842 $ 95,463 $ 89,487 Average Total Intere
Slide 36: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Dollars in Thousands) 2024 - YTD 2023 2022 2021 2020 2019 2018 2017 Net Interest Income $ 192,348 $ 378,219 $ 362,190 $ 321,088 $ 315,678 $ 311,555 $ 305,629 $ 283,493 FTE Adjustment 1,316 2,034 1,304 1,191 1,301 1,667 2,007 3,799 Net Interest Income, Tax Equival
Slide 37: Reconciliation of Non-GAAP Measures
Reconciliation (Dollars in Thousands) 2024 - YTD of Non-GAAP Net Income $ 66,539 Measures Securities (Gains) (Net of Tax)(1) (1,652) Amortization of Intangibles (Net of Tax)(1) 3,398 Core Net Income(2) $ 68,285 Average Stockholders’ Equity $ 1,436,477 Average Tangible Equity(3) $ 1,035,823 Core Retu
Slide 38: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “